Tuesday, November 21, 2006

Forex News: Yen Remains Weak vs Euro

Forex News

The yen remains weak against the euro and the dollar today. Bank of Japan minutes for October monetary policy meeting released today indicated that the economy is likely to expand moderately and interest rates will be raised gradually. The outlook of BOJ rate hike is unchanged. The expectations that BOJ may raise rates early next year cannot be priced in the market until Japanese officials give a clearer signal.

USDJPY encounters interim resistance at 118, backed by 118.30 and 118.70. Subsequent ceilings will emerge at 119 and 119.30, followed by 119.50. On the downside, support begins at 117.75 and 117.50, followed by 117.30. Additional floors are eyed at 117, backed by and 116.80.